Electric vehicle maker Canoo continues to find itself in an up hill push financially.
Shares in Canoo fell still more this week, days after the firm announced the sale of discounted shares in order to raise more than $52 million.
Last week, the price of Canoo shares was down more than 12% and traded at $1.09 per share. But the decline in the value continued throughout the week and on Monday, shares dropped 9.11% or 9 cents and settled at 90 cents.
Canoo, the firm with a plant in Pryor in northeast Oklahoma and plans to convert a 630,000-square-foot building in Oklahoma City into another production plant originally announced it reached agreements with “certain institutional investors” for the purchase and sale of 50,000,000 shares of the company’s common stock.
Canoo explained it anticipated $52.5 million in gross proceeds from the offering and planned to use the proceeds for “general working capital purposes.”
Canoo has struggled financially despite receiving major contracts with some private firms in the U.S. as well as the military. The company posted a $125 million loss in the first quarter of 2022 and publicly stated at the time that it had “significant doubt” whether it would continue operations. But it pressed on ward and signed several supply agreements, one of which was the production of up to 10,000 “lifestyle delivery vehicles” for Walmart.
In November of last year, the city council in Oklahoma City okayed a partnership with Canoo allowing the EV maker to earn up to $1 million in incentives.